Harvard Business Review- Revere Street Essay

Paul Revere was a man of many talents, a “Jack Of All Trades” if you will. Patriot, silversmith, engraver, and republican, he was destined to be a hero. Born to parents Apollos De Rivoire, a French Huguenot, and Deborah Hitchbourn, Paul Revere came into the world on January 1, 1735 in Boston Massachusetts. Clark’s Wharf is where the Reveres resided now. The third born of eight children Revere learned early the lesson of perseverance, a lesson that would be an important in his later life, Revere would need to keep on going no mater what obstacles appeared in his way. Revere attended school in Boston where he got a sufficient education as well as in the shop with his father and the wharves of where he lived. As Revere grows

With a growing real estate market, investors can expect a good return on their investment. In addition, the industries within the town bring in new residents and potential business income.

Leasing projects were down, the market was becoming distressed, the architect was behind, and the project had been shared

Geraldine Smith, a mortgage officer at one saving bank, found Alexander’s rental figures $9,600 higher than those originally submitted by the present owner and offered him a $400,000 mortgage for a 20-year period at 8% interest rate with no prepayment penalties.

Table 7 in the detailed analysis above shows the summary of the Discounted Cash Flow analysis performed for each of the four potential properties considered for investment. From the chart below, we observe that of the four properties, TFB has the maximum increase in reversion value at the end of the holding period, i.e. 10years. On a primarily income generation potential basis, Alison Green, with a Net Present value of the future rents at $734.29 looks attractive among the four options. Looking at the Investment ranks of the four properties with Simple returns and Discounted returns variables, Alison

2. Architect paid $250K and has completed an unknown, but small amount of renovation work so far. He has not invested anywhere near $150K into renovations

You have been asked to bid on a project to paint a structure and you have the following information:

Angus Cartwright III, an investment advisor, was asked to provide investment advisory services for two clients, John DeRight and Judy DeRight. They both wanted to purchase a property that (1) is large enough to attract the interest of a professional real estate management company and (2) has a minimum leveraged return on their investments of 12% after

In this method, the design and the construction roles are combined into a single responsibility and the team is referred to as the Design Build Contractor. The architect is under contract to the contractor and not the owner. The advantages of this method are that the owner is dealing with one contract for the design and construction and does not get involved in the details of the design and construction. The design can be accomplished according to the budget and easily be changed if necessary. Since the maximum price is set in an early stage, this method is faster than the design-bid-build and the construction manager method. However, there are drawbacks to this approach. Since the architect and contractor report to the design/build firm, a conflict is created between the owner and the design/build firm. Also, as the design and construction roles are part of the same team, this can lead to a disadvantage. As the owner is no longer dependent on the architect, the architect’s judgement is no longer provided to the owner and this leads to quality control problems. (what I think if this is the best method or

The current owner ran out of capital to make the necessary improvements, but left a shell that can be remodeled to Mr. Alexander’s specifications. Our client met with a contractor, who confirmed that it would cost approximately $165,000 to complete the original plans.

Beyond the limitations of the actual plan, another shortcoming of pursuing this opportunity on Revere Street are the serious implications associated with Alexander’s “do-it-yourself” approach. By not outsourcing responsibilities to experts, he may be avoiding the explicit employment costs, but he is likely to pay more for doing the job himself later. For example, hiring a general contractor would ensure that the building is constructed to code, would be more efficient because the GC would know how to best handle subcontractors and manage the overall project, both of which would help expedite the process

Given certain indicators of slow market growth and the high purchase price being advertised by the seller, this is most likely a bad investment for Laflin and his investors. While employment growth may be on the rise, the lack of speculative construction is troubling as this implies the market is not expecting an increased demand. In any case, when considering the expiration of the current tenants’ above market rents and the unfortunately low current market rents, Laflin would still need a great deal of growth in addition to a lower negotiated price to make this investment profitable.

Pilgrim Assurance is a case that involves a sealed bid auction. Therefore, the auctioneers will need to sell the building to the highest bidder involved at a minimum bid of $15 million. David Bailey is given the decision to decide on how much to bid for an office building. Furthermore, he needs to make the decision whether to lease it as office space or to convert this office space into condominiums. In this case, I will analyze the goals and objectives of Bailey as well as the other participants. The sealed bid auction indicates that they are willing to take a chance on the market and try to receive high bids. There is no problem with the government participant besides using permits to do renovations. There is

Option 2 (Proceed with Mid-Rise Apartment Complex, Selling in Year 10): While replacing the current structure with a more appealing mid-rise apartment complex would increase the market value of the property, it would also require financing and additional investments. Thus far, Sexton has run into several problems, beginning with the planning commission, and now higher cost estimates, financing and timing issues. Even if Sexton were to obtain financing and somehow meet the January 2005 target date, his original estimates of rental income and cash flow analysis are still not guaranteed. Exhibit 2 provides a net present value range between 103,000 and $214,000 for proceeding with the mid-rise apartment complex and selling in year 10 based on a range of cap rates.

The new construction market in the mid 2000’s was flourishing. People saw building a home as an opportunity for a solid investment because prices and rates were so low that certain homes could depreciate extremely slowly. However, there would be a negative effect from all this low-cost new construction and few were aware of just how devastating it would be to the new construction market.